Adnoc offers naphtha above own price formula
Abu Dhabi National Oil Company (Adnoc) offered naphtha supplies for lifting during April 2010 to March 2011 at $23.50 to $25.50 a tonne above its own price formula on a free-on-board (FOB) basis, similar to levels settled for April 2009 to March 2010 deliveries, traders said yesterday.
The UAE refiner is offering its splitter grade at $23.50 a tonne, low-sulphur naphtha at $24.50 a tonne and pentane plus grade at $25.50 a tonne.
"They had announced the offers on Sunday, and buyers are to revert by March 3," said a term lifter. The levels are similar to term premiums seen for a 12-month period ending March 2010 at $23.50 to $26.00 a tonne, FOB.
However, they are higher than premiums sealed for January to December 2010 at $14.50 to $16.50 a tonne for the three grades.
"The offers are final, especially since Kuwait has already sealed its April 2010 to March 2011 term premiums at $22.00 a tonne [to Middle East quotes, FOB]," said another term lifter.
The offered level came as no surprise to buyers, as Adnoc usually takes the cue from Kuwait Petroleum Corporation, traders said.
Also sentiment has been firming due to strong spot demand from North-east Asia as petrochemicals makers continue to keep their crackers running mostly at full tilt.
Crack spreads – premiums or losses obtained from refining Brent crude into naphtha – were at their highest in about three weeks at $149.08 a tonne.
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